On July 19, the US Department of Housing and Urban Development (HUD) issued an important draft rule to clarify the Fair Housing Act’s 1968 legal mandate to address segregated housing patterns and promote diverse, inclusive communities. The purpose of the rule is to provide clearer guidance to state and local governments receiving HUD funds about how to incorporate fair housing planning and fair housing goals into their programs. HUD’s existing rules have been criticized by the GAO and others for failing to provide clear standards for HUD grantees to follow.

The proposed rule has generated a huge outpouring of comments from fair housing and civil rights groups, housing industry groups, public housing agencies, as well as from the financial services industry, and across state and local government. HUD has been working on this rule for over three years, and it is a centerpiece of the agency’s effort to pursue a more balanced housing policy – although as our comments indicate, we are concerned that the proposed rule falls short of this goal at several key points. However, the proposed rule, with its strong community engagement elements, will also involve many communities in a conversation about fair housing that is long overdue. Here are some highlights from the comments submitted to HUD: